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Hilsenrath's 729 Word FOMC Post-Mortem (In Under 2 Minutes)
It took Hilsenrath 2 minutes after the FOMC announcement to release the following 729 word analysis of what Bernanke just did. The punchline: "Overall, the Fed changed very little in its statement from the previous month. Neither a disappointing December jobs report nor recent turmoil in emerging markets was enough to diminish their positive outlook for the U.S. economy. The Fed reiterated their view that "risks to the outlook for the economy and the labor market as having become more balanced," language they added to the statement for the first time in December.... The Fed repeated its message that they will likely keep rates at
that low level "well past" the unemployment rate reaching 6.5%."
Fed to Further Cut Bond-Buying Program
The Federal Reserve said it would further pare its signature bond-buying program next month, a move that solidifies the central bank's strategy for winding down the program in small steps at each of its meetings as long as the economy continues to improve.
The Fed's policy-making committee said in a statement Wednesday that it would trim its bond purchases to $65 billion per month in February, from a monthly pace of $75 billion in January.
The decision to pull back on the bond program was unanimous, marking the first time there wasn't a dissent at a policy meeting since June 2011.
...
The central bank announced it would start scaling back the program following its Dec. 17-18 meeting, and made the first $10 billion cut in January. At the time, Fed Chairman Ben Bernanke strongly suggested the Fed's preference was to whittle down its bond buying by $10 billion at each of its policy meetings this year, wrapping up the program altogether near the end of the year.
...
Overall, the Fed changed very little in its statement from the previous month. Neither a disappointing December jobs report nor recent turmoil in emerging markets was enough to diminish their positive outlook for the U.S. economy. The Fed reiterated their view that "risks to the outlook for the economy and the labor market as having become more balanced," language they added to the statement for the first time in December.
All ten members of the Fed's policy-making committee supported the decision to continue scaling back the bond-buying program.
The Fed also voted to keep short-term interest rates pinned near zero, where they've been since late 2008. The Fed repeated its message that they will likely keep rates at that low level "well past" the unemployment rate reaching 6.5%. The Fed earlier set that as the threshold at which it will start considering raising rates, as long as inflation remains in check.
The Fed also extended an experimental program which it could someday use to manage short-term interest rates. Known as a "reverse repo" facility, the program uses the Fed's portfolio of bonds as collateral for loans to market participants and uses the rate on those loans to influence market rates. The experiment was set to expire Wednesday, but the Fed extended it for a year until Jan. 2015. They increased caps on the size of trades the Fed can make to $5 billion per counterparty from $3 billion.
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GOLD doesn't know what to do BIATCHEEZ
Exactly what i was going to say. Jumped, headfake, jump again....headfake again?
give it about 30 minutes and it will be smashed below $1250
In paper terms on the crimex you mean. Anyone selling phyz at $1,250?
North Korea just announved they have successfully sent a man to the sun and back.
Screw that, I want to know how this guy types that fast in 2 min plus editorial copy.
is he a HFT ?
Hilsey once fought off a shark attack, stiched the wound himself then quaffed a six pack in under 3 minutes
Hilsey is also the first human to have killed and skinned a bigfoot in under 9 minutes
It's true about North Korea announced sending an astronaut to the sun. When asked about burning up their top space scientist announced:
"We thought of that. We send him at night."
Later, privately he told his friends that the astronaut was given the choice of continuing to live in North Korea or going to the sun.
Not going down means going up strong here, buddy.
Listen dude, anybody can type 314 words a minute is AWESOME!!!!!
LOOKING LIKE MAJOR SUPPORT JUST BROKEN!
http://4.bp.blogspot.com/-WlbKeWFrQ8Y/UugscJ99saI/AAAAAAAAXoo/o3Dt-taeKY...
Thanks again to Daneric's blog
That's only to trick those with a twitchy finger near the sell button.
Note how it shot right back up on the live chart: http://www.pmbull.com/gold-price/
You don't think they are waiting for sucker interpretations of charts like that?
Bullshit! Gold acts exactly right. It sits there and remains calm!
Bitcoins are way cool.
Is this still Bernake? I though it was Mr. Yellan, ya know the fall guy
The trend lately has been market up, gold down and vice versa. I think slowing QE is worse for the market since we all know QE money was used to prop the market. Not gold. If anything, it was used to naked short gold.
Silver is in a little upward waterfall, back to around where it started; as soon as the comes closed in NY. actually the NYMEX; they're sure being obvious about it; but not really doing anything; as I say, it's basically back to where it started the day. On a lighter note, a comumnist on Marketwatch says don't pay any attention to the distress in the emerging markets; and take advantage of the dip in the us market to pick up some bargains. I find this amuzing, but maybe somebody believes this. The major problem here is the various problems and adjustments taking place in the emerging markets are brand new; and we don't really know how much contagion there will be or how this will play out.
Do you think somebody leaked the info to him ahead of timee? If I was a news organization I might sue.
Wake up suzie!
http://www.youtube.com/watch?v=4X7b2E_Jq-k
"... and we're in trouble deep!" Thanks man. That was what I needed ..
Speak for yourself on the trouble side, 3 of my buddies made it out alive.
Since when am I Phil Everly, eh? Or Don? I just liked the music - and it wasn't me who caused your three buddies trouble, may I mind you ... quite the contrary ...
He's just a world class typist, honest.
314 words a minute is fresh!
Leaking it earlier is breach of law.
I'm wondering why no US-American ZH readers are not laying a charge against one or several or all FOMC members.
he's a good fucking typer... wonder how many words he can churn out per minute as he multi-tasks going down on a Central Banker & typing his propganda?
Tyler beat Jon by a minute!
Um, 729 divded by 2?
If K-Hen loses 1772, it's on!
If he loses 500 on CrAAPL, it's a CrAAPLfall at 3:45 PM.
I'll laugh my ass off if this shit starts melting down before old Yeller even gets to take the reigns.
What a nice idea!
Hopefully not before Yellen says something like - "The Economy is on the way to full recovery", you know, for extra Fed-irony.
.
Now that they have a new buyer for their bonds (myra), they can just taper on.
Can someone help me understand how the Fed tapered in January ($75 Billion of Bond / MBS purchases) but apparently money supply increased by over $100 Billion? Do I have it wrong and/or do I not understand something?
What the Fed says is often different than what they do (especially the parts that go unreported). Anybody audit that gold vault recently?
Hey is Merkel out of the hospital yet from her CIA beating I mean skiing accident?
"Nothing can stop this recovery!"
What a bunch of tripe, what a steaming crock of bullshit.
Logically, what hasn't started can't be stopped.
But pretending that something has started, like the "recovery", when it has not started, is not just pretending, but....
It is DISHONEST.
Therefore it is TRIPE and a steaming crock of Bullshit as ebworthren originally posted.
That is what is logical.
This is coming from a group who perceives "first time saver folks" will flock to Myra which can be done now without such instrument. Logic and these people are mutually exclusive. Purposeful deception is only applicable.
Miffed;-)
How is MyRA any different than a regular interest bearing savings account that's FDIC insured?
the only new buyers of bonds here are the people with jobs ... funny thing is there's getting to be less and less of those ....
reporters get a 5 or 10 minute quarantined pre release room to type their story
Nice avatar.
Here it is in a viewable size.
http://www.gifbay.com/gif/exercise_ball-95239/
Arrest Bernanke before he gets away.
yeah... Corzine will be there to throw the cuffs on him?!?
Kevin Henry buying the dip with both fucking hands right now. Good luck kid, yer gonna need it.
Woooo bouncing like a superball out there.... Ride'm cowboy!
Manipulated inventory and interest rates
aimed first at preventing TBTF bank losses
followed by MBS purchases at banks'
prices, enabling investors' (bankers')
purchases of the initial adverse state
of the market whose bubble they created
and burst, pre-empts those who sold the
bubble (policy of hand it over combined
with forced loss sharing, the ripping of
in income on the proceeds from the selling
of the bubble and arm twisted handing over
of "put up or shut up'ability" serves
disconnecting not only the rightful
clearing of the market by the bubble
sellers, but price behavior that would
otherwise enable new household purchases
and their eventual upward price pressure.
The separation of need and demand
in housing is measured by homelessness
(plus people living with their parents.)
All the corrective mechanisms are
knee-capped in favor of interest
rate apartheid and inventory
laundering.
To lend is to see one's principal
lose value when interest rates move
in the only direction they can move,
which is up, not counting remaining
where they are.
Chase the bankers' artificial bubble?
(When it's even more artificial than
the last one?)
The opposite is banker loss taking
and the slow re-incentivizing of
lending.
Delhi's been heading that way, notably
breaking from Washington's strategy,
since August
http://www.xe.com/currencycharts/?from=INR&to=USD&view=1Y
to the rupee's benefit, at least to this point,
though I'm of course not a fortune teller
(I don't know if it'll rain tonight
even at home.)
But really only one class of assets'
prices have seemed to matter: whatever
assets the banks are holding.
http://www.doctorhousingbubble.com/living-at-home-generation-young-rente...
http://www.doctorhousingbubble.com/all-cash-buying-states-feudal-money-w...
http://www.doctorhousingbubble.com/cash-investors-california-cash-buying...
I think the markets having been
made dysfunctional so largely
for so long, they've become
increasingly dependent on the
Fed's Kool-Aid, which is essentially
then trickle down economics.
It's what's left for you after
privatizers get theirs.
Hubert Humphrey coined "trickle
down economics," the variation of
which was Walter Mondale's
"where's the beef."
http://www.youtube.com/watch?v=Ug75diEyiA0
Jim Rickards: The Macro View: Meet Janet Yellen, central planner
http://sufiy.blogspot.co.uk/2014/01/jim-rickards-macro-view-meet-janet.h...
6.5%.....
Sure, after the genocide...
So the plan is for Barry to invest your 401K into Treasuries to not only replace the Fed purchases but increase them so that he can continue printing. What a country. USA!! USA!! USA!! Just don't try and retire anytime soon.
"The Fed repeated its message that they will likely keep rates at that low level "well past" the unemployment rate reaching 6.5%"
That is because the real unemployment rate will still be well above 6.5%.
"The Fed also extended an experimental program which it could someday use to manage short-term interest rates. Known as a "reverse repo" facility, the program uses the Fed's portfolio of bonds as collateral for loans to market participants and uses the rate on those loans to influence market rates. The experiment was set to expire Wednesday, but the Fed extended it for a year until Jan. 2015. They increased caps on the size of trades the Fed can make to $5 billion per counterparty from $3 billion"
i.e. we'll taper by $10B but we'll pump that and more back into the markets by any means possible.